USMA-USNA Leadership Discussion Series 16 Oct 09

Sunday, October 18th, 2009

John Moellering, Chairman of USAA and former commandant of West Point, spoke to us about USAA’s impressive achievements over the past 50 years and more. 13,000 of USAA’s 21,000 employees engage the USAA membership. They are trained, educated and motivated to solve the member’s problem. They are not measured to get a caller off the phone as fast as possible. Member service is the mission of USAA.

Although the average insurance company lost 38{915b2618a7c304f461205894c34b2284541042d3c677679407e2f30838792dcd} of the value of its assets in 2008, USAA gained 1{915b2618a7c304f461205894c34b2284541042d3c677679407e2f30838792dcd}. The average USAA employee receives an average of 100 hours of training per year; even the Board of Directors are trained in their roles for the company.

And USAA continues to expand its markets. On November 11, 2009, membership eligibility will be expanded to all who have served honorably in US Armed Forces.

General Moellering discussed changes to the Board of USAA. The Board of Directors have the explicit mission to set strategy for the company and to assist & to ensure that senior management is able to execute this strategy. No longer – and many global corporations are coming to the same conclusion – is the USAA Board headed by the CEO and expected to serve as an approval mechanism for the CEO’s vision. Corporate Operations and the Board have unique missions which are best executed in support of and separate from one another. If only the former fiefdoms in the financial sector had instituted such a principle.